Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 20 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACERINOX, TALGO.

MARKETS YESTERDAY AND TODAY

A session on an upward curve
The session was relatively calm, with European stock markets increasing their early gains and with the S&P 500 hitting a new high thanks to the solid business results and the M&A news in the pharma sector. In the Euro STOXX, Banks and Telecoms led the gains, with Real Estate and Retail bringing up the rear. On the macro side, in the euro zone July’s inflation figure confirmed the preliminary 0.4% YoY (0.3% previously) and the 1.2% core figure (0.4% previously). In the UK July’s inflation rose unexpectedly to 1.0% in the general figure and 1.8% core. In the US, the Fed’s meeting minutes showed a strong consensus to strengthen the forward guidance, with some members warning that new measures could be necessary. In this regard, some members warned that controlling the curve would not be very beneficial, although it remains an option in the future. According to the WSJ, negotiators representing the US and Chinese Governments would resume talks via videoconference in the coming days in order to review compliance with Phase I of the agreement. In China, the People’s Bank of China (PBoC) kept the interest rate on 1Y and 5Y loans unchanged at 3.85% and 4.65%, respectively. In US business results, NVIDIA, Lowe’s, Target and Analog Devices beat expectations.
What we expect for today
European markets would open with losses of more than -1.0% that could ease as the session progresses. Currently, S&P futures are down -0.5% (the S&P 500 ended down -0.6% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 22.54%). Asian markets are falling (Japan -1.0% and Hong Kong -2.0%).
Today in the US we will learn August’s Philadelphia Fed index, weekly jobless claims and July’s leading indicators. In debt auctions: France will issue bonds due 2021, 2025 and 2027 as well as I/L bonds due 2028, 2032 and 2036. In US business results, Ross Sores and Estee Lauder, among others, will release their earnings.
Underlyings
Acerinox SA

Acerinox is the parent company of a group engaged in the manufacture and sale of flat and long stainless steel products, and stainless steel wires. Co.'s major products include slabs, billets, black coils, plates, hot-rolled coils, hot-rolled sheets, flat bars, hot-rolled re-bars, hot-rolled black bars, engraved sheets, cold-rolled coils, cold-rolled sheets and circles. Co. also provides long stainless steel products, such as wire rods, angles, hot rolled flat bars, hot rolled re-bars, reinforced bars in coils, cold rolled re-bars, hot rolled black bars, cold drawn bars, and smooth turned bars. In addition, Co. offers wires, welding wire bars, and bars for electrodes.

Talgo SA

Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.

Provider
Sabadell
Sabadell

Analysts
Research Department

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